Chemical Management

Huntsman Completes the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio

Huntsman | January 20, 2021

Huntsman Corporation (NYSE: HUN) today announced it completed the acquisition of Gabriel Performance Products (Gabriel), a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from Audax Private Equity.
Huntsman paid $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina.  Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies.   
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions.
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

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Olin - Winchester to Acquire White Flyer Targets Business

prnewswire | August 25, 2023

Olin Corporation announced an agreement to acquire the assets of White Flyer Targets, LLC, North America's preeminent leader in recreational trap, skeet, and sporting clay targets, and combine it with the Winchester Ammunition business. The acquisition includes White Flyer's five state of the art manufacturing facilities in Coal Township, Pennsylvania; Dalton, Georgia; Webb City, Missouri; Knox, Indiana; and, San Bernardino, California and includes White Flyer's recently announced ECO FLYER® target product line. "We are extremely excited to bring together these two leading brands to serve the millions of people who participate in competitive and recreational shotgun shooting sports," said Brett Flaugher, president of Winchester Ammunition. "The combination of Winchester and White Flyer should enhance the continued growth of trap, skeet, sporting clays, and other shotgun sports. This acquisition offers the unique opportunity to provide comprehensive ammunition and clay target solutions for the thousands of shooting ranges across America." Robert Lippert, President and CEO of Reagent Diversified Holdings, Inc., owner of White Flyer Targets, LLC, noted, "Winchester is the perfect choice to take ownership of our iconic brand. The pride our employees have in White Flyer Targets, LLC will only expand as they are welcomed into the Winchester team. We are confident that shooting sports, overall, will benefit from this pairing." The transaction is contingent on Olin's completion of confirmatory due diligence, definitive agreements, and final approval of both companies' Boards of Directors. The transaction is not expected to require any premerger filings and is expected to be completed in the fourth quarter of 2023. Olin would fund the transaction with cash on hand and anticipates that the transaction would be immediately accretive to Olin's shareholders. About Olin Corporation Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

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Chemical Management

Ring Energy Announces the Closing of the Founders Oil & Gas Permian Basin Assets Acquisition

globenewswire | August 21, 2023

Ring Energy, Inc. announced it has completed its previously announced acquisition (the “Transaction”) of the Central Basin Platform (“CBP”) assets of Founders Oil & Gas IV, LLC (“Founders”). Founders’ CBP operations are located in the Permian Basin in Ector County, Texas and are focused on the development of approximately 3,600 net acres that are similar to Ring’s CBP assets acquired in 2022 from Stronghold Energy Operating II, LLC and its affiliate (“Stronghold”). KEY HIGHLIGHTS Immediately accretive to Ring’s production, reserves and Adjusted Free Cash Flow(1); Accelerates Ring’s ability to pay down debt; and Further increases Ring’s inventory of low-risk, high rate-of-return drilling locations, allowing capital allocation flexibility for Ring. Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We are pleased to inform our shareholders that we closed our previously announced acquisition of Founders Oil & Gas CBP assets on August 15, 2023. This Transaction complements our conventional-focused CBP asset position in the Permian Basin with assets that are similar to the CBP assets we acquired in the third quarter of last year. Our near-term focus is to quickly integrate these operations into our business, while at the same time formalizing detailed development plans for the acquired assets. Similar to our other inventory in the area, these assets have stacked pay zones of high-quality rock with proven performance. We intend to leverage our extensive expertise applying the newest conventional and unconventional technologies to optimally develop the acquired inventory of undeveloped drilling locations. In summary, we view this acquisition as another example of creating value through our value focused proven strategy and further positions the Company to deliver on our long-term goals for our shareholders.” TRANSACTION CONSIDERATION After taking into account preliminary closing adjustments for interim cash flow based on the effective date of April 1, 2023 and other customary items, consideration for the Transaction consisted of A cash deposit of $7.5 million paid on July 11, 2023; A cash payment of approximately $42.5 million at closing; and A deferred cash payment of $15.0 million due on or about December 15, 2023. The cash payment at closing was funded with borrowings under Ring’s senior revolving credit facility. ABOUT RING ENERGY, INC. Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets.

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Callon Petroleum Company Announces The Closing Of Delaware Basin Acquisition And Eagle Ford Divestiture

PRNewswire | July 10, 2023

Callon Petroleum Company announced that it closed its previously announced acquisition of Delaware Basin assets from Percussion Petroleum Operating II, LLC ("Percussion") and the sale of its Eagle Ford assets to Ridgemar Energy Operating, LLC ("Ridgemar") on July 3, 2023. "We are excited to announce the completion of another important strategic move for Callon and its shareholders. Through these two transactions, we have created a singular focus on the Permian Basin, reduced our absolute debt position, and kicked off a shareholder return plan," said Joe Gatto, President and CEO. "The bolt-on Percussion transaction improves our Delaware inventory depth and also lowers our cost structure. I would like to thank everyone at Callon, Percussion, and Ridgemar for their efforts to close these transactions." Financial Impact of Transactions The consideration paid at closing for the Percussion transaction consisted of $249 million in cash and approximately 6.3 million shares of Callon common stock, subject to customary post-closing adjustments. Callon received $551 million in cash at closing for the sale of its Eagle Ford assets to Ridgemar, subject to customary post-closing adjustments. Both transactions reflect an effective date of January 1, 2023, and exclude transaction expenses. Stock Repurchase Program As previously announced, the Board of Directors authorized a two-year, $300 million stock repurchase program in conjunction with the transactions that became effective upon their closing on July 3rd. Callon intends to repurchase its first shares under this program in the third quarter of 2023. Balance Sheet Update At closing, Callon's outstanding debt was reduced by approximately $300 million and gross debt is now less than $2.0 billion. Subsequently, Callon submitted a notice of redemption for the $187.2 million of 8.25% Senior Notes maturing July 2025 and expects to complete the redemption in early August. These notes are callable at par and will be funded using the Company's revolving credit facility. About Callon Petroleum Callon Petroleum Company is an independent oil and natural gas company focused on the acquisition, exploration and sustainable development of high-quality assets in the Permian Basin in West Texas.

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